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Why Bitcoin? Why Now?

Bitcoin has soared plenty of times before, but its rise in 2017 has moved it into the investing mainstream

The virtual currency bitcoin continues surging to new highs as a frenzy of investors get in on the action. WSJ's Paul Vigna explains what you need to know, and how to invest should you want to join the mania. Photo: Alexander Hotz/The Wall Street Journal.

For most of its nine-year history, bitcoin has been a financial-markets sideshow, sneered at as a plaything of criminals. No longer: 2017 is the year the digital currency stole the spotlight.

Why now? Part of it is pure momentum, which detractors say is a sure sign of a bubble: As bitcoin has climbed past each $1,000 milestone, it has spurred an investing frenzy. That reached a crescendo this week as the price jumped 40% in just 40 hours and pushed above $16,000.